I was reading a thesis report of a friend and I noticed that he didn't indent the first line of the first paragraph in each chapter. I don't remember noticing it anywhere before until I saw it there and I have some OCD issues with reformatting the documents/reports and make them look awesome.

So I would like to know, if I'm going to write a new document/report that is divided in chapters and paragraphs, what kind of indentation should I prefer? Should I indent all the first lines of the paragraphs regarding if it's the first in a chapter or not and why one method is better than the other?

What's the context of this question? Are you typing something up for school? Writing a fiction MS for submission? Typesetting a self-pubbed book? We need more details, or it's pretty hard to answer.
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Kate SherwoodAug 24 '11 at 20:44

1

As a teacher of middle school students we always teach that students should indent the first paragraph. This is always taught in the text that is provided to us for instruction. My sharp students that are avid readers always bring to my attention that their books seldom indent the first paragraph. Very confusing for young readers and writers. It may be time to clarify this rule for the purpose of consistent instruction in the schools involving publishing companies and text book companies.
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user4749Feb 15 '13 at 15:10

6 Answers
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I have been taught to always leave the first line of a chapter/section unindented, then make all subsequent paragraphs indented. I have also seen all paragraphs indented.

I came across a good discussion on first line indents which notes that, in Robert Bringhurst's Elements of Typographic Style, he states that "opening paragraphs" should be "flush left" because "[t]he function of a paragraph indent is to mark a pause, setting the paragraph apart from what precedes it. If a paragraph is preceded by a title or subhead, the indent is superfluous and can therefore be omitted".

(They also mention that Chicago rules state that "the first line of text following a subhead may begin flush left or be indented by the usual paragraph indention.")

Of course it's up to the people if I'm submitting.. I just saw it there and to tell you the truth it looked like a mistake to me as well.. But after a second view/thought I liked it.. and I wondered if people are using it and if there is somekind of reason for it.. @Craig gave a good reason :)
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LipisJun 22 '11 at 0:56

Don't use Microsoft Word. When you pay more attention to what the font looks like than your character's motives you get beautifully typeset crap. Unless you have need of six different types of quotes, don't even look at your font until you are negotiating with a publisher, and with the increased ebook market maybe that is a decision that is out of your hands.

Professionally printed material typically does not indent the first paragraph, but indents those that follow. For example, Robert Bringhurst states that we should "Set opening paragraphs flush left."[4] Bringhurst explains as follows ...
Keyboarders normally indent paragraphs three to five word spaces—based on what they were taught in school—while professionally printed material such as books and magazines generally use smaller indents. For example, The Elements of Typographic Style states that "at least one en [space]" should be used to indent paragraphs after the first,[6] noting that that is the "practical minimum".[7] An em space is the most commonly used paragraph indent.[8] Miles Tinker, in his book Legibility of Print, concluded that indenting the first line of paragraphs increases readability by 7%, on the average.[9]
Other techniques are possible. Lines can be outdented to signify the start of new paragraphs.[10] Another technique is to insert vertical space between paragraphs. This creates what is sometimes known as "block paragraphs". Some keyboarders use a double carriage return to create this break, whereas typists using word processing applications may use increased leading to create a more pleasing space between paragraphs.

The answer? I think you can either indent it or you don't. It's up to you.

I read somewhere that if you are double spacing between paragraphs, no indent was needed. But if you were single spacing, an indent was needed to show a new paragraph was starting. That is the "rule" I follow.